Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Why New York Mortgage Is Poised to Outperform

Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT New York Mortgage Trust (NASDAQ:NYMT) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at New York Mortgage and see what CAPS investors are saying about the stock right now.

New York Mortgage facts

Headquarters (founded)

New York (1989)

Market Cap

$352.5 million

Industry

Mortgage REITs

Trailing-12-Month Revenue

$40.5 million

Management

CEO Steven MummaCFO Fredric Starker

Return on Equity (average, past 3 years)

9.5%

Cash / Debt

$277.9 million / $6.6 billion

Dividend Yield

15.2%

Competitors

Annaly Capital Management Capstead MortgageMFA Financial

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98%of the 91 members who have rated New York Mortgage believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star Staka, offered a cautiously optimistic take on the New York Mortgage opportunity:

Positive:-Profits from FED interest rate suppression and generates high dividends based on high leverage

Negative:-Risk that FED might get sane again (very low probability)

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.